CASE STUDY: Morgan's Department Store

I. Time Context

The Time context in the case wasn’t mentioned.

II. Point of View

The point of view of the case is the advantage and disadvantage of Universal Price Code (UPC). It was then compare to the manual system of cashiering. In Addition, the roots of problem in the UPC which is the human error was mentioned.

III. Statement of the Problem

The Morgan’s Department Store had use an automated system in their checkout counters; they had eliminated had reduce the average time of customers in the counter from 4.2 minutes to 3.9 minutes and the human error form the manual method. On the other hand, UPC also involves human efforts because of price encoding and verification. Human error for price encoding is 2.99% while verification has 8%

IV. Objectives

• To determine the accuracy rate of Morgan’s price inputting systems.

• To eliminate/lessen errors brought by human factors.

SWOTE Analysis

Strength:

• The UPC systems lessen the average time of a customer in the cashier also decreasing human error because from doing everything, the operator will just encode and a verifier will check his encodings unlike before where cashier will take efforts to type in the amount manually in the cash register.

• More customers were served because of fast service.

• Less stress for the cashiers and the operators.

• Idle times were lessening because of systematic system of work area.

• Less overhead for the department store was consumed because of systematization.

• Accuracy was heighten-up with the help of UPC and an accurate encoder.

• Less cashiers or counters are needed because of fast service.

• With an accurate encoder and verifier, customer satisfaction will be higher and complaints will be lower.

• Manual method can be a back-up system if server and electricity were down in the department store.

• Easily update prices of products.

• Mistakes can easily be detected.

Weaknesses:

• Additional personnel’s was reassigned or hired to be an encoder and a verifier.

• All customers will have overcharged or undercharged bills if the verifier didn’t notice the mistake of the encoder.

• Additional or new computer will be needed.

• Barcodes that are printed on a torn section of packaging, or that have been smeared, smudged or otherwise damaged, will present additional scanning problems. If the corresponding numeric code is also illegible due to damage, the checkout process can be significantly delayed while another package of the same merchandise is located and brought to the checkout counter for scanning.

• Additional process for putting stickers or printed barcodes on the product itself.

• Cashiers might not easily adapt to the program and to the process.

Opportunities:

• Expansion of the Department Store can easily be done.

• Additional Personnel can be added to secure the verification system and to reach zero error. 

• Preventive maintenance must be implemented to the devices equipment, and machines to prevent breakdown.

• Putting Additional Products will be a breeze and product sales can easily be monitored. Demand or sales can also be forecasted.

Threats:

• Other companies might use much higher tech. and fast technologies with higher accuracy.

• Breakdown of system, scanner, censors, and computers.

• Customer, Insects and Time might damage the codes for scanning.

• When beginning to use bar codes has to train employees, which can be a significant issue if the business is large.

Environment:

The atmosphere of the case is the Morgan’s Department Store examining the advantage and disadvantage of UPC.

Alternative Courses of Actions:

• Hire or reposition another staff to become personnel that verifies the encoded price. That way the 8% of 2% or 0.1472% will be lessen to achieve 0% error.

• Make the Manual method of Pricing be the alternative way if bar coding fails or breakdown.

• Upgrade the System but make sure that the updated version is suits the business.

Conclusion:

Compare to the manual process of pricing the products UPC is systematic, easy to use, can handle bulk number of items and most importantly, it doesn’t consume lots of time. Morgan Department Store must stick with it and furnish it because nowadays a Department Store that uses manual system of pricing will not click to people because a big establishment like this pulls many consumers that are why it’s not advisable for the store to use the manual system.

Recommendation:

For the recommendation, the administration of the Morgan’s Department Store must hire another skillful and knowledgeable staff for encoding and verifying the encoded Prices to ensure accuracy and stabilize the conformance of customers to the whole department store. Of course updating of the system and preventive measures must be done to prevent breakdowns and virus from the software.

Credits to: Orville M. Mancilla
Case Study Blues (IE Masters)